Io sono curioso e, magari, anche un po' ingenuo... Dimmi un po' tu gioisci per lo stato attuale di questa non proprio felice operazione industrial aviatoria?...
Bombardier CSeries: a che punto siamo?
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Io sono curioso e, magari, anche un po' ingenuo... Dimmi un po' tu gioisci per lo stato attuale di questa non proprio felice operazione industrial aviatoria?...
Devo dire che mi dispiace molto che il C-Series non abbia avuto il successo sperato. Lo dico da appassionato di aviazione e da osservatore di un progetto che sulla carta aveva un potenziale molto promettente. In Airbus in realtà non l'abbiamo mai considerato un vero concorrente. Si posiziona sulla fascia bassa del nostro mercato e la sovrapposizione con i nostri prodotti e' minima. L'A318 e' morto e sepolto da mo' e l'A319 da un bel po' vende molto poco (ma ha il suo senso se integrato nella famiglia A320 o per alcune operazioni particolari). Il C-Series e' più un concorrente dei regional, o forse nemmeno quello visto che si introduce tra i regional veri e propri (sotto i 100 posti) e il segmento "C" dell'aviazione, quello dell'A320 e 737. Forse e' proprio li' la sua falla: servire un segmento poco richiesto (quello dei 120 posti) con dei costi operativi non troppo distanti da un 150-170 posti. Ed ambi i segmenti che lo "abbracciano" hanno membri della famiglia che arrivano quasi a coprire la sua capacita' (vedasi il più grande degli E-Jet e, appunto l'A319 o 737-700). Senza contare l'unicità' del prodotto, che non avrebbe sinergie con nessun altro aereo in flotta (nemmeno quelli di casa Bombardier, purtroppo, che stanno comunque piano piano diminuendo - quanto ha venduto il CRJ negli ultimi anni?).
L'A320neo non e' stata una risposta diretta al C-Series ma ha certamente contribuito a renderlo meno indispensabile nel mercato. Se non avessimo lanciato l'A320neo (e Boeing il MAX), forse il CS avrebbe venduto qualcosa in più ai piccoli operatori in bisogno di una flotta efficiente durante questa decade (ma i ritardi ne avrebbero comunque compromesso il successo); dubito pero' che i grandi operatori di single-aisle non avessero aspettato il lancio di un nuovo programma Airbus o Boeing sul segmento per i citati motivi di sinergie.
Mi dispiace perché sono convinto che il successo di quest'aereo non avrebbe poi fatto troppo male a nessuno: avrebbe potuto avere il suo mercato e stimolare i concorrenti ad equipararne e superarne le caratteristiche. E in mio giudizio e' anche un bell'aereo, su cui spero di viaggiare un giorno.
L'A320neo non e' stata una risposta diretta al C-Series ma ha certamente contribuito a renderlo meno indispensabile nel mercato. Se non avessimo lanciato l'A320neo (e Boeing il MAX), forse il CS avrebbe venduto qualcosa in più ai piccoli operatori in bisogno di una flotta efficiente durante questa decade (ma i ritardi ne avrebbero comunque compromesso il successo); dubito pero' che i grandi operatori di single-aisle non avessero aspettato il lancio di un nuovo programma Airbus o Boeing sul segmento per i citati motivi di sinergie.
Mi dispiace perché sono convinto che il successo di quest'aereo non avrebbe poi fatto troppo male a nessuno: avrebbe potuto avere il suo mercato e stimolare i concorrenti ad equipararne e superarne le caratteristiche. E in mio giudizio e' anche un bell'aereo, su cui spero di viaggiare un giorno.
Nel ringraziarti del tuo contributo anche se ho quotato solo questa parte, ma che condivido in toto, potresti fornirci qualche indicazione (viste le discussioni in atto tra Tolosa e Montreal/Dorval) e su quale fosse in realta' l'interesse di Airbus nel progetto?
Analyst: Cash Crunch Could Further Delay Global 8000
AINonline.com 08 october 15
As Bombardier’s cash woes continue in light of the failed CSeries negotiations with Airbus, the fallout could have a ripple effect on its other divisions, including the business aircraft division, according to Rolland Vincent Associates president and JetNet iQ director Rolland Vincent.
Bombardier already delayed Global 7000 development by two years, to 2018, and announced layoffs of 1,750 workers as it cut Global 5000 and 6000 production. While the company cited development issues and market forces for those decisions, Vincent believes Bombardier’s weakened cash position played into these moves. “The saga will continue until they secure more CSeries sales with branded global carriers and improve their balance sheet,” Vincent said, adding the lack of cash could force a “pause” in Bombardier’s Global 8000 program, at least as it works to bring the 7000 to market. Bombardier is in a situation where it needs to decide its priorities and the CSeries and 7000 take precedence, he said. Last month, Bombardier reconfirmed its expectation that the Global 8000 would enter service in 2019.
While talks continue of a potential sale of some of Bombardier’s Aerospace units, Vincent does not believe it will involve the business aircraft unit, calling it a “crown jewel” in the company. Learjet could be a potential candidate, but he questioned whether the unit would bring enough value to significantly alter the company’s cash position. Vincent also expressed concern that Bombardier’s ongoing issues will hurt orders, since its customers are business leaders who read the business news every day. And that has ramifications throughout industry. “This is not healthy for business aviation overall,” he said, noting that it makes markets more uncertain and become “a little irrational.”
AINonline.com 08 october 15
As Bombardier’s cash woes continue in light of the failed CSeries negotiations with Airbus, the fallout could have a ripple effect on its other divisions, including the business aircraft division, according to Rolland Vincent Associates president and JetNet iQ director Rolland Vincent.
Bombardier already delayed Global 7000 development by two years, to 2018, and announced layoffs of 1,750 workers as it cut Global 5000 and 6000 production. While the company cited development issues and market forces for those decisions, Vincent believes Bombardier’s weakened cash position played into these moves. “The saga will continue until they secure more CSeries sales with branded global carriers and improve their balance sheet,” Vincent said, adding the lack of cash could force a “pause” in Bombardier’s Global 8000 program, at least as it works to bring the 7000 to market. Bombardier is in a situation where it needs to decide its priorities and the CSeries and 7000 take precedence, he said. Last month, Bombardier reconfirmed its expectation that the Global 8000 would enter service in 2019.
While talks continue of a potential sale of some of Bombardier’s Aerospace units, Vincent does not believe it will involve the business aircraft unit, calling it a “crown jewel” in the company. Learjet could be a potential candidate, but he questioned whether the unit would bring enough value to significantly alter the company’s cash position. Vincent also expressed concern that Bombardier’s ongoing issues will hurt orders, since its customers are business leaders who read the business news every day. And that has ramifications throughout industry. “This is not healthy for business aviation overall,” he said, noting that it makes markets more uncertain and become “a little irrational.”
Bisogna anche considerare che i C Series non vengono via a poco, mentre alcuni concorrenti tra cui l'SSJ hanno prezzi molto più bassi (ed anche loro stentano ad imporsi nel mercato nonostante i CASK bassissimi)
Inoltre bisogna considerare che alcune aerolinee avrebbero delle grane ad introdurlo, come ad esempio, il fatto di downgradare parte del personale del segmento C in un segmento inferiore con tutte le resistenze del caso, più il prezzo dei carburanti cosi' basso non stimola ad efficientare la flotta.
Inoltre bisogna considerare che alcune aerolinee avrebbero delle grane ad introdurlo, come ad esempio, il fatto di downgradare parte del personale del segmento C in un segmento inferiore con tutte le resistenze del caso, più il prezzo dei carburanti cosi' basso non stimola ad efficientare la flotta.
Lo farei con piacere (nei limiti della confidenzialità) ma... non ne ho la più pallida idea! Non ho ricevuto alcuna informazione interna su questo argomento e credo che sia qualcosa di talmente strategico da coinvolgere solamente i piani altissimi dell'azienda. Di cui io, ahimè, non faccio parte!
Bombardier on the hunt for partners but founding family opposes diminished control
Nicolas Van Praet
MONTREAL — The Globe and Mail
Published Thursday, Oct. 08, 2015 6:40PM EDT
Last updated Friday, Oct. 09, 2015 7:34AM EDT
Bombardier Inc. is hunting for financial and strategic partners to help fund its plane programs, but its founding family opposes any effort to diminish their control of the company, a well-placed source said.
“People are dreaming” if they think the founders will entertain any suggestion that they loosen their grip on Bombardier and make changes to their supervoting shares, the person said.
There has been no weakening of their resolve over the years to maintain control over the company, the source added.
The Montreal-based manufacturer, the world’s only maker of both planes and trains, is exploring a range of options to cut its $9-billion (U.S.) debt and put the company on more solid permanent footing.
The effort, including exploratory talks with Airbus Group NV on sharing ownership of Bombardier’s C Series jet program, isn’t a last-ditch act of desperation by a company seeking an emergency rescue for the C Series, one person familiar with the matter has said. Rather, it’s part of a wider attempt to improve its balance sheet and fund longer-term needs at a time when its earnings and cash intake are under significant pressure.
The person described it as “a security blanket” for the years ahead as Bombardier pushes through the early difficulties of C Series production and works to develop the new Global 7000/8000 business jet. With access to $4.4-billion in short-term capital, Bombardier has sufficient resources to bring the C Series to market, the person said.
But a partnership with Airbus could offer things Bombardier couldn’t achieve on its own, including all of the benefits from bringing a major competitor onside.
Talks with Airbus broke off on Tuesday at the insistence of the European plane maker after they became public. They could resume because the idea of a partnership is said to have enjoyed significant support among some of the senior people involved.
Partnering with Airbus is only one of a number of avenues Bombardier is scouting.
Sources confirm the company is also talking to pension fund manager Caisse de dépôt et placement du Québec about an investment. After a rift between two pillars of Quebec Inc. earlier this year, the two appear to be on friendlier terms of late.
The Caisse is among Bombardier’s largest shareholders, with 41.6 million class B shares and 5.7 million class A shares at the end of 2014, Bloomberg data show. It does not have a seat on the board.
According to a credible account of Bombardier’s February equity sale provided to The Globe and Mail, the company offered the Caisse an opportunity to be lead investor but resisted when the pension fund manager made several unexpected requests as a condition of its investment. Among those requests was a weakening of Bombardier’s long-standing dual-class share structure, which gives the founding Bombardier-Beaudoin family 54-per-cent control over voting rights through a special class of shares. In the end, the Caisse bought only a token amount of shares as part of the sale.
Bombardier’s bargaining position would appear much diminished from February, as the company turns to the pension fund for an investment for the second time in less than a year. But it’s unclear if Bombardier’s ownership structure is being challenged now as it was then.
The relationship between Bombardier and the Caisse was never as toxic as it was made out to be, one person said, adding the proof is that the two are talking again about an investment. “There’s no drama on the table. There’s just a [potential] deal,” the person said.
A spokeswoman for Bombardier and an official with the Caisse both declined to comment on Thursday.
“Quebec has a lot to lose if this thing flies apart,” said Todd Johnson, a portfolio manager at BCV Asset Management Inc., which holds Bombardier bonds. “If I’m thinking this through logically, you need a large equity investment of some large patient investor.”
Bombardier posted its first loss in a decade last year and has struggled to win new orders for its planes through the first six months of 2015. In May, Caisse chief executive Michael Sabia urged investors to give Bombardier CEO Alain Bellemare more time to turn the company around. “Markets are impatient, but you have to give Mr. Bellemare and the Bombardier management team the chance to do some things.”
http://www.theglobeandmail.com/repo...s-could-hinge-on-dual-shares/article26730552/
Nicolas Van Praet
MONTREAL — The Globe and Mail
Published Thursday, Oct. 08, 2015 6:40PM EDT
Last updated Friday, Oct. 09, 2015 7:34AM EDT
Bombardier Inc. is hunting for financial and strategic partners to help fund its plane programs, but its founding family opposes any effort to diminish their control of the company, a well-placed source said.
“People are dreaming” if they think the founders will entertain any suggestion that they loosen their grip on Bombardier and make changes to their supervoting shares, the person said.
There has been no weakening of their resolve over the years to maintain control over the company, the source added.
The Montreal-based manufacturer, the world’s only maker of both planes and trains, is exploring a range of options to cut its $9-billion (U.S.) debt and put the company on more solid permanent footing.
The effort, including exploratory talks with Airbus Group NV on sharing ownership of Bombardier’s C Series jet program, isn’t a last-ditch act of desperation by a company seeking an emergency rescue for the C Series, one person familiar with the matter has said. Rather, it’s part of a wider attempt to improve its balance sheet and fund longer-term needs at a time when its earnings and cash intake are under significant pressure.
The person described it as “a security blanket” for the years ahead as Bombardier pushes through the early difficulties of C Series production and works to develop the new Global 7000/8000 business jet. With access to $4.4-billion in short-term capital, Bombardier has sufficient resources to bring the C Series to market, the person said.
But a partnership with Airbus could offer things Bombardier couldn’t achieve on its own, including all of the benefits from bringing a major competitor onside.
Talks with Airbus broke off on Tuesday at the insistence of the European plane maker after they became public. They could resume because the idea of a partnership is said to have enjoyed significant support among some of the senior people involved.
Partnering with Airbus is only one of a number of avenues Bombardier is scouting.
Sources confirm the company is also talking to pension fund manager Caisse de dépôt et placement du Québec about an investment. After a rift between two pillars of Quebec Inc. earlier this year, the two appear to be on friendlier terms of late.
The Caisse is among Bombardier’s largest shareholders, with 41.6 million class B shares and 5.7 million class A shares at the end of 2014, Bloomberg data show. It does not have a seat on the board.
According to a credible account of Bombardier’s February equity sale provided to The Globe and Mail, the company offered the Caisse an opportunity to be lead investor but resisted when the pension fund manager made several unexpected requests as a condition of its investment. Among those requests was a weakening of Bombardier’s long-standing dual-class share structure, which gives the founding Bombardier-Beaudoin family 54-per-cent control over voting rights through a special class of shares. In the end, the Caisse bought only a token amount of shares as part of the sale.
Bombardier’s bargaining position would appear much diminished from February, as the company turns to the pension fund for an investment for the second time in less than a year. But it’s unclear if Bombardier’s ownership structure is being challenged now as it was then.
The relationship between Bombardier and the Caisse was never as toxic as it was made out to be, one person said, adding the proof is that the two are talking again about an investment. “There’s no drama on the table. There’s just a [potential] deal,” the person said.
A spokeswoman for Bombardier and an official with the Caisse both declined to comment on Thursday.
“Quebec has a lot to lose if this thing flies apart,” said Todd Johnson, a portfolio manager at BCV Asset Management Inc., which holds Bombardier bonds. “If I’m thinking this through logically, you need a large equity investment of some large patient investor.”
Bombardier posted its first loss in a decade last year and has struggled to win new orders for its planes through the first six months of 2015. In May, Caisse chief executive Michael Sabia urged investors to give Bombardier CEO Alain Bellemare more time to turn the company around. “Markets are impatient, but you have to give Mr. Bellemare and the Bombardier management team the chance to do some things.”
http://www.theglobeandmail.com/repo...s-could-hinge-on-dual-shares/article26730552/
Bombardier Said to Hold Talks With JetBlue on CSeries Order
Bombardier Inc., struggling to find established airlines as buyers for its new CSeries airliner, is in talks about a possible order with JetBlue Airways Corp., two people familiar with the matter said.
The discussions are continuing, and no decision has been reached, said the people, who asked not to be identified because the deliberations are private. They gave no details on the size of any potential sale to JetBlue, whose fleet now consists of Airbus Group SE and Embraer SA aircraft.
Signing up JetBlue would let Bombardier make good on a pledge to add well-known carriers to a roster of CSeries buyers now dominated by lessors and small airlines. The only North American airline with a firm order is Republic Airways Holdings Inc., which said last year there was “no place” in its business model for the CSeries.
The CSeries is Bombardier’s biggest-ever jet, a step up in size from the company’s signature regional models. Now running more than two years late, the aircraft hasn’t won a firm sale since September 2014 and has drained cash as development costs ballooned $2 billion to $5.4 billion.
“We do not have any comment specific to Bombardier’s CSeries, but it is routine for us to meet with aircraft manufacturers,” said Doug McGraw, a spokesman for New York-based JetBlue.
Air Canada
Bombardier is also in talks with Air Canada regarding the CSeries, said one of the people familiar with the company’s plans. A CSeries test aircraft was recently on display at Toronto’s Lester B. Pearson International Airport, Air Canada’s main international hub. Air Canada decided in 2014 to keep some of its Embraer planes after considering the CSeries as an alternative.
Isabelle Arthur, an Air Canada spokeswoman, didn’t immediately return a call seeking comment. Isabelle Gauthier, a spokeswoman for Montreal-based Bombardier, declined to discuss talks with potential customers.
JetBlue operates 60 Embraer E190s with 100 all-coach seats and has about 150 larger, single-aisle Airbus planes, most of them the top-selling A320 model. In 2013, the airline pushed back an order for 24 additional Embraers to as late as 2022 amid a focus on larger, more fuel-efficient planes.
While JetBlue has expressed openness to the idea of moving just to Airbus planes from the A320 family, it also has said the smaller E190 is best suited for short-haul, high-frequency routes it flies out of Boston.
The Bombardier jets also could serve that role, but it’s unclear whether JetBlue would want to work through any early issues with the planes after being the initial airline to fly the E190 a decade ago, said Robert Mann, an aviation consultant based in Port Washington, New York.
“With the CSeries you potentially benefit from some very attractive new technology and economics,” Mann said. “But you also absorb the slings and arrows of being one of the first big operators. You work out all the kinks.”
http://www.bloomberg.com/news/artic...d-to-hold-talks-on-cseries-order-from-jetblue
Bombardier Inc., struggling to find established airlines as buyers for its new CSeries airliner, is in talks about a possible order with JetBlue Airways Corp., two people familiar with the matter said.
The discussions are continuing, and no decision has been reached, said the people, who asked not to be identified because the deliberations are private. They gave no details on the size of any potential sale to JetBlue, whose fleet now consists of Airbus Group SE and Embraer SA aircraft.
Signing up JetBlue would let Bombardier make good on a pledge to add well-known carriers to a roster of CSeries buyers now dominated by lessors and small airlines. The only North American airline with a firm order is Republic Airways Holdings Inc., which said last year there was “no place” in its business model for the CSeries.
The CSeries is Bombardier’s biggest-ever jet, a step up in size from the company’s signature regional models. Now running more than two years late, the aircraft hasn’t won a firm sale since September 2014 and has drained cash as development costs ballooned $2 billion to $5.4 billion.
“We do not have any comment specific to Bombardier’s CSeries, but it is routine for us to meet with aircraft manufacturers,” said Doug McGraw, a spokesman for New York-based JetBlue.
Air Canada
Bombardier is also in talks with Air Canada regarding the CSeries, said one of the people familiar with the company’s plans. A CSeries test aircraft was recently on display at Toronto’s Lester B. Pearson International Airport, Air Canada’s main international hub. Air Canada decided in 2014 to keep some of its Embraer planes after considering the CSeries as an alternative.
Isabelle Arthur, an Air Canada spokeswoman, didn’t immediately return a call seeking comment. Isabelle Gauthier, a spokeswoman for Montreal-based Bombardier, declined to discuss talks with potential customers.
JetBlue operates 60 Embraer E190s with 100 all-coach seats and has about 150 larger, single-aisle Airbus planes, most of them the top-selling A320 model. In 2013, the airline pushed back an order for 24 additional Embraers to as late as 2022 amid a focus on larger, more fuel-efficient planes.
While JetBlue has expressed openness to the idea of moving just to Airbus planes from the A320 family, it also has said the smaller E190 is best suited for short-haul, high-frequency routes it flies out of Boston.
The Bombardier jets also could serve that role, but it’s unclear whether JetBlue would want to work through any early issues with the planes after being the initial airline to fly the E190 a decade ago, said Robert Mann, an aviation consultant based in Port Washington, New York.
“With the CSeries you potentially benefit from some very attractive new technology and economics,” Mann said. “But you also absorb the slings and arrows of being one of the first big operators. You work out all the kinks.”
http://www.bloomberg.com/news/artic...d-to-hold-talks-on-cseries-order-from-jetblue
Bombardier running out of options as family resists pressure to reduce control
Bombardier (BBDb.TO) is running out of options as the Canadian aircraft maker seeks to raise the cash for the new jet that potentially would allow it to challenge the supremacy of Boeing (BA.N) and Airbus (AIR.PA) in global jetliner sales, according to several sources with knowledge of the situation.
The sources said for Bombardier to persuade investors to provide more capital, the Bombardier-Beaudoin family will probably have to reduce its 53 percent voting control of a company which was founded by snowmobile inventor Joseph-Armand Bombardier in 1942 and moved into train and plane manufacturing through acquisitions made by his son-in-law Laurent Beaudoin.
The company recently failed to get Airbus to take on much of the future cost of the new plane, the CSeries. Airbus pulled out of discussions to buy a controlling stake in the program last week after they were first reported by Reuters.
Bombardier spokeswoman Isabelle Rondeau declined to comment on any specific discussions, saying that the company is “exploring initiatives such as a potential participation in industry consolidation, but we will not discuss our activities in this regard or speculate on potential outcomes.” Development costs for the CSeries program have soared to $5.4 billion, from an earlier projection of $3.2 billion and Bombardier is likely to continue burning through cash for some years even after it is expected to go into service next year, according to analysts and aerospace industry executives.
The family’s deep ties in Quebec – it is at the heart of the French-Canadian province’s political establishment – may not be as much help as it has been in the past.
While Quebec's government has said it will support Bombardier and its 18,000-strong workforce in the province, the Quebec public pension plan Caisse de depot et placement has been unwilling to increase its stake in Bombardier, according to a source at Caisse with knowledge of discussions. The fund, whose mandate includes contributing to local economic development, owns around 2.2 pct of the manufacturer’s class B shares and 1.8 pct of class A, making it a top five shareholder in both.
Another source said the relationship between Caisse and Bombardier “has been tense and confrontational” after Caisse requested early this year that the family agree to reduce the power of its 85 percent stake in the super-voting “A” shares so that they only have six times the number of votes as the “B” shares rather than the current ten times. That would have reduced the family’s voting stake to around 42 percent.
The family rejected that and in response Caisse declined to serve as the lead investor for a C$3.35 billion (US$2.59 billion) debt and equity capital raising in February, said this source, who has direct knowledge of Bombardier’s financial issues. "They lack negotiating power," said the Caisse source in reference to both Bombardier and the controlling family. "It’s like you lend money to a friend who says everything’s fine – only to come back a month later and ask for more money."
Caisse spokesman Maxime Chagnon said “we have a longstanding relationship with Bombardier and it continues.” He declined to comment on any request for a change in Bombardier’s voting structure.
STRATEGY QUESTIONED Some other major shareholders are also far from convinced by Bombardier’s plans. “There's a lot of confusion. I don't see a clear strategy. By now they should have one. So it's very concerning,” said a fund manager at another top shareholder, speaking on condition of anonymity.
Bombardier’s Rondeau said that the company has a “very good” relationship with Caisse. Asked about Caisse requesting a change in the voting structure, Rondeau said: “You’ll have to ask the Caisse about that.”
Bombardier’s Executive Chairman Pierre Beaudoin, who is the founder’s grandson, declined to comment. The family’s foundation, established by the founder’s widow in 1965 to continue his charitable works, referred queries to the company.
With Airbus out of the picture, a longer shot is that talks with a Chinese investor over the CSeries program can be revived and ushered through a Canadian foreign investment review. Discussions ended three to four weeks ago, one of the sources said, though it was unclear why. The source did not name the Chinese investor.
Getting a deal approved that involves the transfer of aerospace technology to the Chinese will be complicated, but it may not be impossible to get support from the Canadian and the Quebec governments. Bombardier does plan to raise cash from its rail unit, with plans to list a minority stake in Frankfurt. This is its most valuable asset and is expected to be much more attractive to investors than the aircraft arm.
The company had $3.1 billion in cash at the end of the second quarter, but faces additional costs of at least $1 billion to $2 billion to complete certification of the CSeries and cover early production losses in the first two to three years of delivery, according to Credit Suisse aerospace analyst Rob Spingarn.
The plane may not be profitable for four years or more, according to a source briefed on the company's current financial situation. The company’s debt burden has increased to $9 billion and its share price has dropped 58 percent since the beginning of the year, valuing the entire company at just C$3.76 billion.
"LONG PUTT"
The company was advised two years ago by Goldman Sachs, its longtime investment bank, to cancel the program because “continuing to fund the CSeries was a long putt,” one person familiar with those discussions said. Bombardier’s Rondeau denied that Goldman provided such advice.
The new jet will target the 110-130 seat market, competing directly against the next generation Airbus A319neo and Boeing’s 737 MAX family of jets. Until now, Bombardier’s biggest jet has been the CRJ, the largest of which has 104 seats.
Bombardier’s Vice President of Business Acquisition, Ross Mitchell, emphasized the company’s “100 percent” commitment to the jet in Berlin on Wednesday. While Bombardier has 243 firm orders for the jet, that is below its launch target of 300, according to company announcements, and it hasn’t announced a new firm order in more than a year.
At least one Bombardier CSeries customer, who has a firm order, plans to ask for a discount on options for additional aircraft. "Looking at the contract we signed, is the option price the price you would negotiate today, or is there room for improvement there?" said a top executive at the customer. Bombardier invited Airbus chiefs to see the plane at the Paris Airshow in June, in a standard industry courtesy. The chat was warm enough to encourage Bombardier officials to formally approach Airbus, said several sources familiar with the matter. Bombardier would have probably written off some of its development costs for the jet as part of any deal.
Bombardier, though, got a mixed reaction at Airbus, with some executives at the European plane maker open to expanding its portfolio for a minimal outlay but others wary of diluting both profit margins and attention to other projects. "The value for us wasn't clear enough," a source close to Airbus said.
(Additional reporting by Euan Rocha and John Tilak in Toronto, Mike Stone in New York, Benjamin Lim in Beijing; Writing by Allison Martell; Editing by Amran Abocar and Martin Howell)
http://www.reuters.com/article/2015/10/16/us-canada-bombardier-insight-idUSKCN0SA09W20151016
Bombardier (BBDb.TO) is running out of options as the Canadian aircraft maker seeks to raise the cash for the new jet that potentially would allow it to challenge the supremacy of Boeing (BA.N) and Airbus (AIR.PA) in global jetliner sales, according to several sources with knowledge of the situation.
The sources said for Bombardier to persuade investors to provide more capital, the Bombardier-Beaudoin family will probably have to reduce its 53 percent voting control of a company which was founded by snowmobile inventor Joseph-Armand Bombardier in 1942 and moved into train and plane manufacturing through acquisitions made by his son-in-law Laurent Beaudoin.
The company recently failed to get Airbus to take on much of the future cost of the new plane, the CSeries. Airbus pulled out of discussions to buy a controlling stake in the program last week after they were first reported by Reuters.
Bombardier spokeswoman Isabelle Rondeau declined to comment on any specific discussions, saying that the company is “exploring initiatives such as a potential participation in industry consolidation, but we will not discuss our activities in this regard or speculate on potential outcomes.” Development costs for the CSeries program have soared to $5.4 billion, from an earlier projection of $3.2 billion and Bombardier is likely to continue burning through cash for some years even after it is expected to go into service next year, according to analysts and aerospace industry executives.
The family’s deep ties in Quebec – it is at the heart of the French-Canadian province’s political establishment – may not be as much help as it has been in the past.
While Quebec's government has said it will support Bombardier and its 18,000-strong workforce in the province, the Quebec public pension plan Caisse de depot et placement has been unwilling to increase its stake in Bombardier, according to a source at Caisse with knowledge of discussions. The fund, whose mandate includes contributing to local economic development, owns around 2.2 pct of the manufacturer’s class B shares and 1.8 pct of class A, making it a top five shareholder in both.
Another source said the relationship between Caisse and Bombardier “has been tense and confrontational” after Caisse requested early this year that the family agree to reduce the power of its 85 percent stake in the super-voting “A” shares so that they only have six times the number of votes as the “B” shares rather than the current ten times. That would have reduced the family’s voting stake to around 42 percent.
The family rejected that and in response Caisse declined to serve as the lead investor for a C$3.35 billion (US$2.59 billion) debt and equity capital raising in February, said this source, who has direct knowledge of Bombardier’s financial issues. "They lack negotiating power," said the Caisse source in reference to both Bombardier and the controlling family. "It’s like you lend money to a friend who says everything’s fine – only to come back a month later and ask for more money."
Caisse spokesman Maxime Chagnon said “we have a longstanding relationship with Bombardier and it continues.” He declined to comment on any request for a change in Bombardier’s voting structure.
STRATEGY QUESTIONED Some other major shareholders are also far from convinced by Bombardier’s plans. “There's a lot of confusion. I don't see a clear strategy. By now they should have one. So it's very concerning,” said a fund manager at another top shareholder, speaking on condition of anonymity.
Bombardier’s Rondeau said that the company has a “very good” relationship with Caisse. Asked about Caisse requesting a change in the voting structure, Rondeau said: “You’ll have to ask the Caisse about that.”
Bombardier’s Executive Chairman Pierre Beaudoin, who is the founder’s grandson, declined to comment. The family’s foundation, established by the founder’s widow in 1965 to continue his charitable works, referred queries to the company.
With Airbus out of the picture, a longer shot is that talks with a Chinese investor over the CSeries program can be revived and ushered through a Canadian foreign investment review. Discussions ended three to four weeks ago, one of the sources said, though it was unclear why. The source did not name the Chinese investor.
Getting a deal approved that involves the transfer of aerospace technology to the Chinese will be complicated, but it may not be impossible to get support from the Canadian and the Quebec governments. Bombardier does plan to raise cash from its rail unit, with plans to list a minority stake in Frankfurt. This is its most valuable asset and is expected to be much more attractive to investors than the aircraft arm.
The company had $3.1 billion in cash at the end of the second quarter, but faces additional costs of at least $1 billion to $2 billion to complete certification of the CSeries and cover early production losses in the first two to three years of delivery, according to Credit Suisse aerospace analyst Rob Spingarn.
The plane may not be profitable for four years or more, according to a source briefed on the company's current financial situation. The company’s debt burden has increased to $9 billion and its share price has dropped 58 percent since the beginning of the year, valuing the entire company at just C$3.76 billion.
"LONG PUTT"
The company was advised two years ago by Goldman Sachs, its longtime investment bank, to cancel the program because “continuing to fund the CSeries was a long putt,” one person familiar with those discussions said. Bombardier’s Rondeau denied that Goldman provided such advice.
The new jet will target the 110-130 seat market, competing directly against the next generation Airbus A319neo and Boeing’s 737 MAX family of jets. Until now, Bombardier’s biggest jet has been the CRJ, the largest of which has 104 seats.
Bombardier’s Vice President of Business Acquisition, Ross Mitchell, emphasized the company’s “100 percent” commitment to the jet in Berlin on Wednesday. While Bombardier has 243 firm orders for the jet, that is below its launch target of 300, according to company announcements, and it hasn’t announced a new firm order in more than a year.
At least one Bombardier CSeries customer, who has a firm order, plans to ask for a discount on options for additional aircraft. "Looking at the contract we signed, is the option price the price you would negotiate today, or is there room for improvement there?" said a top executive at the customer. Bombardier invited Airbus chiefs to see the plane at the Paris Airshow in June, in a standard industry courtesy. The chat was warm enough to encourage Bombardier officials to formally approach Airbus, said several sources familiar with the matter. Bombardier would have probably written off some of its development costs for the jet as part of any deal.
Bombardier, though, got a mixed reaction at Airbus, with some executives at the European plane maker open to expanding its portfolio for a minimal outlay but others wary of diluting both profit margins and attention to other projects. "The value for us wasn't clear enough," a source close to Airbus said.
(Additional reporting by Euan Rocha and John Tilak in Toronto, Mike Stone in New York, Benjamin Lim in Beijing; Writing by Allison Martell; Editing by Amran Abocar and Martin Howell)
http://www.reuters.com/article/2015/10/16/us-canada-bombardier-insight-idUSKCN0SA09W20151016
Analysis: Bombardier Inc Will Lose US$32M for Each CSeries Built in 2016-17
FinancialPost.com (Toronto newspaper)
Posted: 10.26.15
Bombardier Inc. will lose US$32 million on each of the first 50 CSeries aircraft it builds, meaning the program will continue to bleed billions of dollars through at least 2018, according to a new analysis by U.S. aviation consultancy Leeham Co.
It’s normal for an aircraft manufacturer to lose money on the first several planes it builds, as production costs are highest at the beginning of a program and an all-new aircraft such as the CSeries is often priced aggressively to lure customers.
However, Bombardier lost control of the program’s timing, meaning it’s now stuck dealing with high costs at a time of weakening revenues.
“Developing new aircraft has several challenges,” consultant Bjorn Fehrm wrote in the Leeham analysis.
“One of the major ones is the economic management and timing of the cash flows that an aircraft program causes.”
Bombardier’s initial plan was to spend US$3.5 billion on developing the CSeries between 2008 and 2013, but the budget has ballooned to at least US$5.4 billion and the aircraft is now expected to enter service in 2016 — almost three years later than originally scheduled.
The company was relying on cash flow from its business aircraft division, particularly the high-margin Global 5000 and 6000 ultra-long-range jets, to offset the initial costs of developing the CSeries.
However, the delays mean the CSeries is now set to ramp up production just as the Global 5000 and 6000 are under growing competitive pressure and the new Global 7000 and 8000 — also delayed — are still under development.
“On top of this, the business jet market went soft during 2015 due to changes in several important markets like China and Russia,” Fehrm wrote.
Assuming that Bombardier is able to produce a maximum of 50 aircraft during the first two years, Fehrm estimated that the company will lose $32 million per aircraft, or a total of US$1.6 billion, in 2016 and 2017.
This comes while Bombardier will still be putting the finishing touches on the larger CS300 version of the aircraft, meaning the program as a whole will burn through about US$1 billion of cash in both 2016 and 2017, he added. That number will shrink slightly to US$700 million in 2018.
FinancialPost.com (Toronto newspaper)
Posted: 10.26.15
Bombardier Inc. will lose US$32 million on each of the first 50 CSeries aircraft it builds, meaning the program will continue to bleed billions of dollars through at least 2018, according to a new analysis by U.S. aviation consultancy Leeham Co.
It’s normal for an aircraft manufacturer to lose money on the first several planes it builds, as production costs are highest at the beginning of a program and an all-new aircraft such as the CSeries is often priced aggressively to lure customers.
However, Bombardier lost control of the program’s timing, meaning it’s now stuck dealing with high costs at a time of weakening revenues.
“Developing new aircraft has several challenges,” consultant Bjorn Fehrm wrote in the Leeham analysis.
“One of the major ones is the economic management and timing of the cash flows that an aircraft program causes.”
Bombardier’s initial plan was to spend US$3.5 billion on developing the CSeries between 2008 and 2013, but the budget has ballooned to at least US$5.4 billion and the aircraft is now expected to enter service in 2016 — almost three years later than originally scheduled.
The company was relying on cash flow from its business aircraft division, particularly the high-margin Global 5000 and 6000 ultra-long-range jets, to offset the initial costs of developing the CSeries.
However, the delays mean the CSeries is now set to ramp up production just as the Global 5000 and 6000 are under growing competitive pressure and the new Global 7000 and 8000 — also delayed — are still under development.
“On top of this, the business jet market went soft during 2015 due to changes in several important markets like China and Russia,” Fehrm wrote.
Assuming that Bombardier is able to produce a maximum of 50 aircraft during the first two years, Fehrm estimated that the company will lose $32 million per aircraft, or a total of US$1.6 billion, in 2016 and 2017.
This comes while Bombardier will still be putting the finishing touches on the larger CS300 version of the aircraft, meaning the program as a whole will burn through about US$1 billion of cash in both 2016 and 2017, he added. That number will shrink slightly to US$700 million in 2018.
giusto per fare i conti della serva, a quanto verrebbe venduto il singolo aereo?
29/10/2015 11:55
Bombardier: 4,9 mld $ perdita III trim., Quebec investira' 1 miliardo $
Per il programma aereo CSeries (Il Sole 24 Ore Radiocor) - Roma, 29 ott - Bombardier ha accusato una perdita di 4,9 miliardi di dollari nel terzo trimestre e il governo del Quebec iniettera' un miliardo di dollari nel programma aereo CSeries.
La perdita corrisponde a una svalutazione di attivi per CSeries che dipende per 1,2 miliardi dall'abbandono del programma Learjet 85, un aereo business previsto per il 2018.
bab (RADIOCOR) 29-10-15 11:54:57 (0340) 3 NNNN
Bombardier: 4,9 mld $ perdita III trim., Quebec investira' 1 miliardo $
Per il programma aereo CSeries (Il Sole 24 Ore Radiocor) - Roma, 29 ott - Bombardier ha accusato una perdita di 4,9 miliardi di dollari nel terzo trimestre e il governo del Quebec iniettera' un miliardo di dollari nel programma aereo CSeries.
La perdita corrisponde a una svalutazione di attivi per CSeries che dipende per 1,2 miliardi dall'abbandono del programma Learjet 85, un aereo business previsto per il 2018.
bab (RADIOCOR) 29-10-15 11:54:57 (0340) 3 NNNN
Quebec's $1 billion bailout to Bombardier is a 'gamble on the unknown'
http://uk.businessinsider.com/r-que...ier-a-gamble-on-the-unknown-2015-10?r=US&IR=T
http://uk.businessinsider.com/r-que...ier-a-gamble-on-the-unknown-2015-10?r=US&IR=T
Secondo il Financial Times di oggi il miliardo di dollari (presumo canadesi) non e' bastato ad arginare il crollo delle azioni Bombardier
Esatto, anche perche' c'e' molto scetticismo sul fatto che l'accordo con il Quebec sia sufficiente a garantire il futuro della societa'.
- Stato